JPMorgan Chase: The rally in US stocks may be difficult to sustain after the Fed's rate cut.

According to Odaily Planet Daily, JPMorgan strategists believe the recent stock market rally may stall after the anticipated Federal Reserve rate cut, as investors take profits. Positive signals from policymakers in recent weeks have fueled continued betting activity, propelling the stock market higher. A team led by Mislav Matejka wrote, "Investors may be more inclined to lock in gains before year-end rather than further increase directional exposure. Rate cut expectations are fully priced in, and the stock market has returned to its highs." JPMorgan strategists remain bullish in the medium term, believing the dovish Fed will support the stock market. Meanwhile, low oil prices, slowing wage growth, and easing US tariff pressures will allow the Fed to ease monetary policy without exacerbating inflation. Other factors that could boost the stock market in 2026 include reduced trade uncertainty, increased fiscal spending in the Eurozone, and the rapid deployment of US artificial intelligence technology. (Jinshi)